Trump Mulls Over 25% Tariff Boost on Imported Cars

WASHINGTON, D.C. – May, 23, 2018   

Donald Trump thinks through a Section 232 investigation that will highly likely lead to tariffs rise.

The plan is similar to the steel and aluminum tariffs imposed earlier this year. Economists say that protectionism could end up in trade wars and do more harm than good to the US economy.

The President’s team investigates using a legal provision of the 1962 Trade Expansion Act to find whether tariffs or other restrictions are needed on imported cars. Trump wrote in his Twitter “There will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!”

There’s a possibility that this act is to push Mexican and Canadian partners be easy breezy while negotiating the new NAFTA. The White House hoped to push it through Congress by year’s end.

According to WSJ, tariffs based on national-security arguments generally take months to execute, because the administration is required to conduct detailed studies that provide the rationale for such moves. Applying tariffs or another remedy under Section 232 of the 1962 law would require a lengthy investigation and report from the U.S. Commerce Department.

Tariffs based on national-security arguments generally take months to execute, because the administration is required to conduct detailed studies that provide the rationale for such moves. Applying tariffs or another remedy under Section 232 of the 1962 law would require a lengthy investigation and report from the U.S. Commerce Department.

“There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” Commerce Secretary Wilbur Ross said in a statement announcing the probe late Wednesday. Mr. Ross said he initiated the investigation following a conversation with Mr. Trump.

The investigation into possible auto tariffs also is expected to be more involved and potentially last longer than the administration’s 10-month study of aluminum and steel tariffs, an official said.

The probe will look into cars, sport-utility vehicles, vans and light trucks, the Commerce Department said in a statement, adding that the investigation will “consider whether the decline of domestic automobile and automotive parts production threatens to weaken the internal economy of the United States”.

photo: wired.com

Author: USA Really

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